Your most valuable resource is time. It's a resource because it runs out, and unlike other resources such as food, water and energy, when time runs out, you can't refuel it. The 80/20 principal focuses on 80% of revenue coming from 20% of your clients, so how can you make the 80/20 work for you? Here's how:
1. Database management: Everyone will have a different system and CRM for managing their database, but the one thing you should implement is a coding of clients, your attention should be focused towards people who send you referrals, with less time invested in casual buyers. Some people are incredibly well connected and are go to people once you get a new listing, these people should be contacted as well as every contact that fits the buying criteria. Buyers should be coded with their requirements on beds, baths, location, price range, and likeliness to take action.
2. Providing them different engagement opportunities: Most people will send weekly email blasts, and leave it at that. You should be engaging people, especially the people who will refer you buyers. Send these people who are likely to refer clients to you either personal information that is good for their business, or a piece that can be universally applied. This constant contact works wonders.
3. Never forgetting the revenue will come from the 20%: Many reasons agents fail is because they give up on pushing the 20% who are going to buy property. A lot of agents after classifying a 'Class A' buyer try once or twice and then move on to fresh meat. They quit. And go for the pot of gold in the unqualified 80% - remember your money will come from the top 20% and don't forget it.
4. Nurturing, nurturing, nurturing: Once you have classified a person of extreme interest, that you believe will buy property soon, add them to a list. Call it the nurture list, and once every seven to ten days, pop in a phone call asking them how their weekly search went, and suggest a property for them. If they are in the 20% they will be keen, so they won't mind hearing from you frequently. These update calls are imperative because an active buyers decisions can change rapidly, so ensuring that they are updating you on their circumstances is essential. They will also appreciate the update, and it is a good time to recap how the properties you have showed them fit in to the larger scheme of things.
5. Analysing your buyers: The way you can tell where your buyers will come from is by looking at your past buyers. Build up profiles of your last ten sales and analyse where they came from, what income they most likely had, where they hang out socially and what their buying purpose is. Have investors bought your last ten homes? If so, your listings description should be changed, and you should be calling anyone who wants a blue chip investment to look at your new listings. Past performance is a good indicator for future performance, let the past provide signals for the future.
6. Becoming part of the 20%: The best way you can get in with the 20% of people who are going to buy your properties is to eat, sleep, drink where they hang out. You need to get on to a personal level with each and everyone of them, and also get exposed to their network. By getting exposed to their network, you meet further buyers who have the same traits and are looking for the same things. Start using your social time to hang out with influencers and the people who are going to buy your homes. The time you spend here will be more valuable than cold-calling the other 80%
These tips are a good way to start focusing on a smaller market. By concentrating on a niche market that are influential, connected and ultimately buyers, you increase the likelihood that they will buy or send a valid buyer your way. Keeping them close builds rapport with influential people who will want you to succeed and want to send buyers your way.
About the Author:
Todd Schulberg handles all things marketing for Homely.com.au - Living and breathing property, Todd has a keen interest in the movements in the market and how agents can utilise new tools and technology in order to be more connected. Using all things social, Todd suggests different ways that agents can engage and think outside the square with their marketing approach.